TRANSPORT SECTOR ROADMAP AND THE INVESTMENT PROGRAM I. Roadmap

Transcription

1 TRANSPORT SECTOR ROADMAP AND THE INVESTMENT PROGRAM I. Roadmap 1. Launched in 2008, the government s Afghanistan National Strategy (ANDS) is a Millennium Goals (MDGs) based action plan and road map for developing the country s transport sector. 1 As described in Pillar 3, Infrastructure, the Transport and Civil Aviation Sector Strategy proposes a safe, integrated transport network that ensures domestic and international connectivity by moving people and goods reliably and at low cost. 2 In addition to a long list of infrastructure needs in all transport subsectors, ANDS provides a planning and policy framework, specific development targets and dates for achievement, and an overall strategic vision to guide investment and reforms in the transport sector until In 2010, ANDS was refined and updated with a more specific list of priority programs and projects in the form a Prioritization and Implementation Plan (PIP). ANDS PIP provides a more detailed results-based structure of programs and components of how a new government cluster coordination mechanism will support bringing about targeted focused results. 3 A driving factor in the ANDS PIP is readiness for the Transition Process. The Transition Process agreed between the government and the international community envisages that Afghanistan will assume the lead role in all aspects of governance, development, and peace. 4 In addition to ongoing political and military processes, sustainability of the transition requires a development support package to reinforce the social contract between government and its citizens. Rapid restoration of essential services and vital infrastructure assists in the perception of a return to normality and contributes to an irreversible transition process. 3. As a means to map out the process in each of the different clusters and assign performance indicators and targets, ANDS PIP identifies National Priority Programs. One such identified program within the Economic and Infrastructure Cluster is Program 1: National Regional Integrated Resources Corridor Initiative (NRIRCI). This flagship transport oriented program focuses on developing the critical infrastructure needed to reap benefits directly from large scale, environmentally friendly exploitation Afghanistan s mineral resources and indirectly from increased trade flows and labor mobility. The program aims to deliver shared-use road, rail, aviation, power and water systems in order to, inter alia, establish Afghanistan as a strategic land bridge that connects the East to the Middle East through to Western Europe and to Central and South Asia. If successful, it will drive a surge in national revenues, which would pave the way for discretionary finance to support nationally driven development objectives. 4. NRIRCI proposes rehabilitation and upgrading of Afghanistan s national and regional trade links with Iran, Pakistan, Tajikistan, Turkmenistan, and more broadly with the People s Republic of China and Central Asia. The general concept is for restoration and further development of a multimodal transport network connecting natural resources, local production points, and urban centers with markets abroad. Building on the selection criteria used in ANDS PIP, NRIRCI assesses priorities based on: 1 Islamic Republic of Afghanistan (2008). Transport and Civil Aviation Strategy (2007/ /13), Pillar III, Infrastructure, Afghanistan National Strategy. Kabul. 2 Hereinafter, the Transport and Civil Aviation Sector Strategy is referred to as the Transport Sector Strategy. 3 Islamic Republic of Afghanistan (2010). Afghanistan National Strategy, Prioritization and Implementation Plan Mid 2010 Mid 2013, Volumes 1 & 2. Kabul. 4 These three roles are closely aligned with the identified ANDS PIP clusters of: governance, socio-economic development, and security, respectively. 1

2 Inherent economic potential from natural resources (minerals and hydrocarbons) along and adjacent to a corridor (direct and indirect impact); Regional integration potential and stimulation of local and cross-border trade; Infrastructure constraints to the realization of the economic potential from natural resources (minerals and hydrocarbons); Potential for micro and small and medium enterprise (SME) development; Impact on poverty alleviation, especially among disadvantaged communities; Connectivity to social centers, remote communities with much needed humanitarian aid and basic public services; Economic impact (cost of the project versus time and fuel savings); Initial request (upgrading or complementary to previously completed project); Potential impact on improved security and stability; and Environment impacts. 5. NRIRCI realizes the needs for institutional reform in the transport sector with a particular emphasis on sector-based planning, interagency coordination, and a focus to operations and maintenance (O&M). NRIRCI suggests that the government should be prepared to largely shoulder the O&M costs for the transport sector by the end of In order to do so, the government has proposed the following: Establishment of an initially semi-autonomous Road Authority for management of construction and maintenance of highways, primary and secondary roads. Establishment of a National Road Fund. Contracting routine and urgent maintenance to the private sector. Introduce fuel excise duties on fuel imports to ensure regular funding for maintenance. Establishment of an independent Afghanistan Rail Authority. Drafting and endorsement of a blueprint for railway sector development in Afghanistan, including clarification of regulatory and operating roles, formulation of a railway legal framework and regulations, and institutional development. Establishment of an independent Civil Aviation Authority (CAA). 6. The priority projects and change management efforts included in NRIRCI as well as the institutional, legal, and policy reforms are tightly aligned with the subprojects, outputs, impacts, outcomes of the proposed investment program. 7. NRIRCI is a capital intensive program. Financing of the NRIRCI will build on existing systems, such as government financing, and funding from bilateral and multilateral donor agencies. The government anticipates that major external investors to fund NRIRCI include the ADB, World Bank, European Union (collectively and member states individually), USAID, India, Japan, and other resources that can be mobilized. The recently established Afghanistan Infrastructure Trust Fund (AITF), which is managed by the ADB, will be a key mechanism for infrastructure financing. AITF was set up to address the following constraints to the required infrastructure investment: Afghanistan s infrastructure needs exceed the financing capacity of the government or any single agency funding agency; and The challenge of coordination and pooling of resources to key government priorities through an efficient and effective financing vehicle. 2

3 8. Projects supported by AITF will be cofinanced by Asian Bank (ADB). The governments of the United Kingdom and Japan were the first donors to contribute to the AITF with GBP35 million and $20 million, respectively. 9. Based the selection of priority projects, estimated costs, and commitments to date, the estimated budget shortfall for NRIRCI is estimated at approximately $2.1 billion. Table 1: National Regional Integrated Resources Corridor Initiative Budget Summary Table Overall Budget for All Components, All Components Budget 3689 Existing Funds and Commitments 1626 Remaining Needs for All Components 2063 Overall Budget for Road Component - Budget A 823 Road Component Budget 2074 Existing Funds and Commitments 1251 Remaining Needs for Road Component 823 Overall Budget for Rail Component - Budget B 963 Rail Component Budget 1241 Existing Funds and Commitments 278 Remaining Needs for Rail Component 963 Overall Budget for Aviation Component - Budget C 277 Aviation Component Budget 374 Existing Funds and Commitments 97 Remaining Needs for Aviation Component 277 All costs in Feb 2011 prices. Source: Ministry of Mines, National Regional Integrated Resources Corridor Initiative estimates. II. Investment Program 10. The financing gap for transport infrastructure construction and maintenance indicates the need to mobilize funds from multilateral and bilateral agencies, and the private sector. ADB will provide financial assistance to meet the budget requirements and play a catalytic role through management of the AITF and in mobilizing private sector funding by helping the government create a better investment climate through road transport sector reforms. 11. The sector outcome will be increased demand for transport, particularly road transport, and improved road traffic operation on the rehabilitated regional highways and national roads. The rehabilitated roads will reduce vehicle operating costs and travel time of the domestic, regional, and transit traffic, thereby contributing to the growth of domestic and international trade in the area, promoting regional cooperation with the neighboring countries, and satisfying the requirements of local population in transportation of goods and passengers. 12. The initiative aim to support transport sector policy reform actions is necessary given that: (i) the current planning framework for the transport sector is inadequate; (ii) some of the actions in the transport sector policy framework have not been met; (iii) sustainable maintenance funding strategy, particularly for roads, has not been developed; and (iv) the transport sector should accommodate new challenges, such as cost recovery principles and the potential role of private sector in road construction, operation, and maintenance. Together with other donors, ADB will focus its key agenda for policy dialogue and continue its dialogue with the government to secure stable financing sources for sustainable maintenance of infrastructure. By utilizing a multitranche financing facility (MFF), ADB s approach acknowledges 3

4 the need for flexibility and a phased approach. Moreover, given the previous cost overruns experienced by infrastructure projects in the sector, the approach may also assist to bridge the financing gap created by these overruns. 13. The capacity of the existing government agencies in the transport sector remains weak after many years of donor assistance, even though a substantial amount of assistance has been directed towards planning, capacity building and institutional strengthening. ADB will continue supporting the government s efforts to enhance institutions and human resources in the transport sector, namely, the road and rail subsectors through the capacity development concurrently with hands-on infrastructure implementation and management. 14. In summary, the investment program is closely aligned with Afghanistan s observed land transport sector deficiencies, the government s strategies, plans, programs, and initiatives, particularly as described by ANDS, ANDS PIP, and NRIRCI. As such the investment program will assist in closing the funding gap of the government s roadmap for transport sector development. The tables below illustrate the priority land transport projects of the government over the short, medium, and long term planning horizons and how the ADB investment program will support their planning, design, and implementation. Table 2: Afghanistan s Land Transport Investment Program a Item Estimated Amount A. Long Term Plan ( ) b 1. Road Network 1, Railway Network 2,000 B. Medium Term Plan ( ) 1. Priority Road Infrastructure c 550 Kabul-Jalalabad (156 km) 150 Faizabad-Eshkashem (156 km) 150 Jabul Saraj - Nijrab (51 km) 35 Lashkar Gah Gereshk (33 km) 35 Dar-i-Suf-Yakawlang (182 km) Priority Rail Infrastructure 2,100 Mazar-e-Sharif-Shiberghan-Andkhoy-Aqina (225 km) d 370 Hairatan-Kunduz-Logar-Kabul-Jalalbad-Torkham (1,060 km) e 1,320 Herat-Juno-Samategh (124 km) f 160 Kandhar-Spin Boldak-Chaman (121 km) 250 C. Short Term Plan ( ) g 1. Priority Road Sections 170 Bagramy-Sapary (50 km) 60 Faizabad-Beharak (44 km) 75 Jabul Saraj - Nijrab (51 km) Priority Rail Network Planning and Operations 132 Feasibility Study for Mazar-e-Sharif-Shiberghan-Andkhoy 2 Hairatan-Mazar-e-Sharif Railway Operations and Maintenance h 130 a Estimates based on ANDS, ANDS-PIP, and NRIRCI. b It is expected that finance for these items will be extended through the AITF and other co-financing. c Designed to be funded and implemented in tranches of ADB MFF Transport Network Investment Program. d Proposed to be funded under Tranche 3 of ADB MFF Transport Network Investment Program and co-financing opportunities will be investigated. e Funding secured from private sector mining consortium from the People s Republic of China. f Funding pledged by the Government of Iran. g Proposed to be financed under Tranche 1 of ADB MFF Transport Network Investment Program. h Total required funding will be based on freight tonnage realized. Potential gap financing proposed to be financed under Tranche 1 of ADB MFF Transport Network Investment Program. 4

Islamic Republic of Afghanistan Ministry of Rural Rehabilitation and Development (MRRD) National Area Based Development Program (NABDP) WORKING TOWARDS UNIVERSAL ACCESS TO MODERN ENERGY SERVICES: POLICY

G8 ACTION PLAN: APPLYING THE POWER OF ENTREPRENEURSHIP TO THE ERADICATION OF POVERTY The UN Commission on the Private Sector and Development has stressed that poverty alleviation requires a strong private

IDA at Work Nicaragua: Innovative Approaches Reach the Poor in Remote Rural Areas IDA is helping Nicaragua to scale-up its model interventions for tacking rural poverty Following decades of instability

A. Justification PROJECT PREPARATORY TECHNICAL ASSISTANCE 1. The Government of Azerbaijan, the Ministry of Transport and Baku Metro Company requested ADB to help improving its urban transport system and

Country Operations Business Plan December 2014 Turkmenistan 2015 2016 This document is being disclosed to the public in accordance with ADB s Public Communications Policy 2011. CURRENCY EQUIVALENTS (as

Peaceful and Just Societies: A Key Factor in Financing for Sustainable Development Input to the third Financing for Development Conference Published: May 2015 Recommendations: 1. Include language in the

United Nations S/2008/434 Security Council Distr.: General 3 July 2008 Original: English Special report of the Secretary-General pursuant to Security Council resolution 1806 (2008) on the United Nations

Presented by: Rhonda Irby Business Development Ghazanfar Group Ghazanfar Group Afghanistan s Leading Energy Company Overview of the Ghazanfar Group Presented by Rhonda Irby Business Development Manager

FROM BILLIONS TO TRILLIONS: MDB Contributions to Financing for Development In 2015, the international community is due to agree on a new set of comprehensive and universal sustainable development goals

Prefeasibility Study for the High Speed Line HU-RO Border Bucharest - Constanta Description and Objectives Timisoara - 13 th of September 2012 1 The European Vision for Railway Transport The European Commission's

Alternatives to the Circ Project Prioritization Methodology Prepared for Circ Task Force July 28, 2011 CCRPC staff has developed a draft methodology described below and detailed in the attached pages for

CDIA Strategy and Action Plan for Pro-poor Urban Infrastructure Development 2011-2012 July 2011 Final Version CDIA Cities Development Initiative for Asia TABLE OF CONTENTS TABLE OF CONTENTS... I ACRONYMS...

Statement by Mr. Jun AZUMI, Minister of Finance of Japan, at the Forty-Fifth Annual Meeting of the Board of Governors of the Asian Development Bank (Manila, Philippines, May 4, 2012) 1. Introduction Mr.

Brief overview TURKISH CONTRACTING IN THE INTERNATIONAL MARKET Construction plays a crucial role in Turkey s economic development, accounting for 5.9% of GDP and employing some 1.8 million people. When

Optimizing World Bank Group Resources and Supporting Infrastructure Financing 1 At their meeting in February 2014, G20 Ministers of Finance and Central Bank Governors requested the World Bank Group (WBG)

International Workshop on Strategies for Development and Food Security in Mountainous Areas of Central Asia June 6-10, 2005 -- Dushanbe, Tajikistan This document contains a series of recommendations and

International Social Security Association Afric ISSA Meeting of Directors of Social Security Organizations in Asia and the Pacific Seoul, Republic of Korea, 9-11 November 2005 Current challenges in delivering

Strategy for selective cooperation with India January 2009 December 2013 1 Ministry for Foreign Affairs 9 July 2009 Annex to UF2009/46329/ASO Strategy for selective cooperation with India for the period

UNITED NATIONS Economic and Social Commission for Asia and the Pacific 53 member States 9 associate members South and South-West Asia Afghanistan Bangladesh Bhutan India Iran Maldives Nepal Pakistan Sri

DEPARTMENT OF TRANSPORTATION UNITED STATES OF AMERICA DEPARTMENT OF TRANSPORTATION Funding Highlights: Invests a total of $74 billion in discretionary and mandatory budgetary resources for the Department

Annex C PROGRESS REPORT ON MANAGING FOR DEVELOPMENT RESULTS AT THE ASIAN DEVELOPMENT BANK PREPARED FOR THE SECOND INTERNATIONAL ROUNDTABLE ON MANAGING FOR DEVELOPMENT RESULTS FEBRUARY 2004 Annex C CONTENTS

SUMMARY OF NATIONAL VOLUNTARY REVIEW PROCESS INDEPENDENT STATE OF SAMOA The Government of the Independent State of Samoa strongly supports the launch of the United Nations Sustainable Development Goals

5 JUNE 2015 MINISTERIAL MEETING OF THE BLUE WEEK 2015 We, Ministers responsible for Ocean/ Fisheries/ Maritime Affairs, having met in Lisbon on June the 5 th, 2015, at the invitation of the Minister of

GEOPOLITICS OF ENERGY AND ENERGY SECURITY A EUROPEAN PERSPECTIVE Jean-Paul Decaestecker Council of the European Union Energy Foresight Symposium 2007 BERGEN, 22-23 March 2007 EFS 2007 The views expressed

A EUROPEAN DEFENCE RESEARCH & TECHNOLOGY STRATEGY An Introduction to the EDRT Strategy Alexander Weis, Chief Executive, European Defence Agency Enhancing the effectiveness of the European Defence Research

Executive Summary Energy management must become more sustainable and less dependent on increasingly scarce fossil fuels. Energy is a fundamental element of the economy, and the Netherlands must do more

Developed land in new industrial parks Afghanistan is providing investors access to developed land to set up in professionally managed industrial estates. These modern parks offer investors the benefits

The Engine of Growth - Alliance between SIAM and JAMA - Fumihiko Ike, Chairman Japan Automobile Manufacturers Association SIAM Annual Convention, New Delhi, September 12, 2014 Thank you very much for the

ISBN 92-64-01504-3 Internationalisation and Trade in Higher Education Opportunities and Challenges OECD 2004 Executive summary In the last decade, new forms of cross-border post-secondary education have

A FRAMEWORK FOR NATIONAL HEALTH POLICIES, STRATEGIES AND PLANS June 2010 A FRAMEWORK FOR NATIONAL HEALTH POLICIES, STRATEGIES AND PLANS June 2010 This paper reviews current practice in and the potential

Energy Security: Role of Regional Cooperation Traian Chebeleu Today s Conference is dedicated to a topic that has deeply preoccupied the governments and the business communities in the Emerging Europe,

Mobilizing Public Finance for Adaptation - Use of Policy-Based Loan in Trinidad and Tobago Gerard Alleng, Climate Change Sr Specialist UNFCCC Second Forum of the Standing Committee on Finance Mobilizing

Country Operations Business Plan December 2014 Kazakhstan 2015 2017 This document is being disclosed to the public in accordance with ADB's Public Communications Policy 2011. CURRENCY EQUIVALENTS (as of

REPUBLIC OF KENYA MINISTRY OF STATE FOR PLANNING, NATIONAL DEVELOPMENT AND VISION 2030 8 TH POVERTY AND ECONOMIC POLICY (PEP) RESEARCH NETWORK CONFERENCE IN DAKAR, SENEGAL PAPER ON THE ACTUAL USES OF CBMS

The World We Want A North-East Asian Youth Vision This Declaration was handed to His Excellency Kim Sung-hwan, Minister of Foreign Affairs and Trade of the Republic of Korea, in Seoul on 9 th of January

The Responsibility of Business Schools In a Changing Asia FRANCIS G. ESTRADA President, AIM 2 nd International Business School Shanghai Conference 4 November 2008 MANAGEMENT SCHOOLS have a role to play

Hong Kong Declaration on Sustainable Development for Cities 1. We, the representatives of national and local governments, community groups, the scientific community, professional institutions, business,

ECONOMIC AND FINANCIAL COMMITTEE Brussels, 2 September 2002 EFC/ECFIN/352/02 Common Understanding - The role of the IMF in the Poorest Countries The main objective of the IMF is to promote macro-economic

MEDIA BACKGROUNDER MILITARY VERSUS SOCIAL EXPENDITURE: THE OPPORTUNITY COST OF WORLD MILITARY SPENDING The headline estimate for total world military spending for 2015 amounts to $1676 billion, or about

briefing note Building Disaster Risk Management capacity: key principles How can programmes aiming to build disaster risk management (DRM) capacity improve their effectiveness? What works and why? What